CAGR Calculator
Compound Annual Growth Rate — measure any investment's true return
Or — find Future Value using CAGR
About the CAGR Calculator
The Compound Annual Growth Rate (CAGR) Calculator measures the steady annual rate at which an investment or business metric would have had to grow to reach its ending value from its beginning value over a given period — smoothing out the year-to-year volatility into a single comparable figure. It is widely used by investors to compare mutual funds, stocks, and portfolios on an equal footing, and by businesses to benchmark revenue or profit growth. Unlike simple average returns, CAGR accounts for compounding and gives a more accurate picture of true performance.
How to Use
- Enter the initial value (purchase price, starting portfolio value, or beginning revenue).
- Enter the final value (current price, ending portfolio value, or latest revenue).
- Enter the number of years between the two values and click Calculate.
- Optionally enter a CAGR % and click "Find Future Value" to project where an investment could reach.
Formula Used
Ending Value = final amount, Beginning Value = initial amount, n = number of years. The inverse — projecting a future value — uses FV = Beginning Value × (1 + CAGR)^n.
Understanding Your Results
Important Note
CAGR is a backward-looking metric — it tells you what happened, not what will happen. It assumes smooth, steady compounding and masks interim volatility (e.g. a fund that fell 50% and recovered may show an impressive CAGR yet have been very risky to hold). Always review the full return history, risk metrics, and qualitative factors before drawing investment conclusions from CAGR alone.